Posted Apr 5, 2017 2:23:54 PM
By Jim Kaemmerlen
Why Is There One?
The shortest answer to why we have a set-up charge for our fluoropolymer coating projects is that our set-up charge covers the expenses that allow Precision Coating to be a top vendor in the fluoropolymer coating business—which means you receive top-quality products delivered to specification and on time.
Why Medical Wire Differs
This model differs for our medical wire business, as that charge is rolled into the piece price. That’s because it is generally high-volume business with a very similar process. We cover small quantity wire orders with a minimum lot charge, rather than a set-up charge. There are a few unique wire applications that actually do have special set-up work involved, and an appropriate set-up is charged for them.
For our highly engineered component (industrial) work, there is a $300 set-up fee for any order, and the piece price is added to that. The set-up charge is necessary for this work, because frequently piece count is low, and there is truly a significant amount of set-up work being done—before actual parts are handled. In 2014, we began applying this charge to all industrial orders evenly, regardless of total value. If the order is so big that it will take many days to process, and there are many actual set-ups, the charge is increased appropriately, but those instances are rare.
Understanding Set-Up Costs
The set-up costs, for any given job, cover our activities and material expenses for the following:
- Cleaning and maintaining spray equipment
- Mixing and testing coating formulae
- Cleaning of all work areas and inspection areas
- Fabricating and cleaning fixtures for holding parts
Set-up costs are also covering the following activities, even though they are not necessarily associated with specific jobs:
- Maintenance and materials for our grit-blast booth
- Maintenance and filters for spray booths
- Maintenance of ovens
- Maintenance of ventilation systems
- Disposal of old coating and solvents
Any lapse in our attention to the above tasks would result in immediate quality problems in the coating that we deliver. So, in a very general sense, our set-up charges cover the costs to remain a high-quality coating facility, with tight process controls, and an ISO 13485 certification.
Precision Coating applies the same rigorous quality standards to all aspects of the projects we handle for customers. Contact us so we can evaluate how we can provide you with the best solution for your next order.